Deloitte's New Tax and Wealth Planning Guide Helps Taxpayers Address Uncertainties

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Nov 18, 2010, 09:00 ET

WASHINGTON, Nov. 18, 2010 /PRNewswire/ -- With changes expected in legislation, taxes and spending in the coming months, and the year-end rapidly approaching, taxpayers face personal financial decisions amidst a high level of uncertainty. To help individuals and private companies plan for future financial changes and demands, Deloitte has released the 2011 Essential Tax and Wealth Planning Guide, available for download online at www.deloitte.com/us/2011taxwealthguide.

"Major decisions will be made in the coming year in Washington, and personal finances will undoubtedly feel the impact. It is important that individuals plan despite these uncertain times in order to protect assets as changes are enacted," says Julia Cloud, a partner with Deloitte Tax LLP and national leader of its private client advisors practice. "Deloitte's planning guide focuses on several areas to help with today's planning needs: income taxes, wealth transfer taxes, potential impact of increasing tax rates, tax planning for those who reside in multiple states or countries, and considerations for private businesses."

"While these are uncertain times, it is still critical that individuals plan for the potential for increased income tax rates," says Eddie Gershman, a partner at Deloitte Tax LLP and a contributor to the guide. "By proactively exploring tax planning opportunities related to income earned and potential use of credits and deductions, individuals can better position themselves to successfully navigate the changing tax rate environment."

The Deloitte guide focuses on three key principles:

Continue to plan; work with what you know – While significant tax changes may take place in the near future, taxpayers will find that disciplined planning under present law will produce real results. This is especially important as many of the benefits under existing tax law may continue.

Be wary of quick answers and simple advice – Tax legislation generally never concludes in the manner in which it starts. Before taking action in response to potential change, taxpayers should analyze a proposed transaction and alternative outcomes.

Watch for opportunities and know your risks – Given the continuing uncertainty over the long-term outlook for the federal budget and its influence on the value of the dollar, taxpayers should keep informed about tax and nontax reforms, and how changes could impact their portfolios.

"Deloitte's guide helps taxpayers better understand their personal tax position and develop plans necessary to protect their financial position," concluded Cloud.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte